Telecom leads sharemarket up

By NZPA

Friday 3rd June 2005

The sharemarket ended the week on a positive note today, with top stock Telecom leading the way higher in thin overall trade.

The benchmark NZSX-50 index was up 25.95 points to 3060.98, while the NZSX-All capital index rose 8.65 points to 973.24.

Bellwether stock Telecom set the tone for the broader market, gaining 10c to $6.07 on turnover worth $32.6 million.

Carter Holt Harvey rose 3c to $1.80 to add to yesterday's 4c gain.

Yesterday the company reassured investors that the sale of part of its forest estate was on track despite reports that big US investor Hancock Timber Resources had withdrawn from bidding for part of its forest estate. The company is selling a third of its trees for $400m.

Contact Energy rose 4c to $6.94.

Rounding out the top four was Fletcher Building, which lost 4c to $6.48. Grant Williamson of Hamilton, Hinding, Greene said the fall was probably due to profit taking after yesterday's 25c rally.

Scott Technology lost more ground today after being hammered 7% lower yesterday on a profit downgrade. The shares lost a further 10c today to $2.55.

NZ Refining was up another $1.00 to $36.00 after saying yesterday its profit margins had doubled in March and April.

Ports of Auckland lost 3c to $7.92 after Auckland Regional Holdings (ARH) again extended its $8/share takeover offer to July 1.

ARH is hoping to get a 90% stake in POA to gain full control. At the close of business yesterday, it had an 85.1% stake.

Williamson said the extension had been expected, but today's price fall showed not everyone believed ARH would get what they wanted.

"Not everyone's confident that the council are going to get to that 90% level and are fearful if it doesn't progress that share price is going to fall back a reasonable way," he said.

Air New Zealand rose 1c to $1,42. The airline today announced an extra 84 domestic flights to cope with expected extra demand during the Lions rugby tour.

Meanwhile, NZAX-listed Seeka Kiwifruit Industries today announced plans to step up to the main stock exchange board following a capital raising that seeks $15 million.

Seeka was unchanged at $4.70 on the NZAX today.

Total market turnover was worth $91.6 million. Of the 147 stocks traded today there were 61 rises and 41 falls.

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